British farmers could increase their exports of lamb to the GCC if a trade deal is secured. Getty
British farmers could increase their exports of lamb to the GCC if a trade deal is secured. Getty
British farmers could increase their exports of lamb to the GCC if a trade deal is secured. Getty
British farmers could increase their exports of lamb to the GCC if a trade deal is secured. Getty

UK farmers target Gulf's 'massive' appetite for lamb with trade deal


Laura O'Callaghan
  • English
  • Arabic

Lamb raised on the lush grasslands, mountains and marshlands of Wales is known for its tenderness and melt-in-the-mouth texture and regarded as among the finest in the world.

Now, Welsh farmers hope that its distinctive flavour could become popular in the Middle East amid trade talks between the UK and the Gulf Co-operation Council.

Wales’s mild climate and mineral-rich soil form part of a landscape ideal for grazing.

Salt marsh lamb, among the industry’s niche products, gets its unique taste from the environment on which the animals graze — the salt marshes of Wales — and is sought after by meat connoisseurs.

David Jones, a Conservative MP representing the farming constituency of Clwyd West in north Wales, is optimistic that diners in the Gulf can be tempted by the local delicacies on offer in his area, but appreciates that work still needs to be done to capitalise on the trade deal being pursued.

Mr Jones, who chairs the UAE all-party parliamentary group in the British Parliament, hopes continuing trade talks between the UK and the GCC will lead to a lucrative deal which will remove the 5 per cent tariff on meat imports into the bloc. The change, he argued, would open the door for the UK to take advantage of the “massive upsurge in interest” in British lamb in the region.

If the UK-GCC negotiations result in a deal — projected to boost trade by up to £15.8 billion ($19.1bn) — new markets could open while existing ones expand in Britain's agricultural industry, and Welsh lamb could become a mainstay on menus at high-end restaurants in the Gulf, he hopes.

The UAE, the main destination for foreign tourists in the GCC, has the potential to emerge as a leading foreign market for Welsh lamb under an agreement, Mr Jones says.

“Welsh lamb is to sheep meat what Bollinger is to Champagne,” he told The National. “It’s the very best.

Salt marsh lambs in Gower, south Wales. Alamy
Salt marsh lambs in Gower, south Wales. Alamy

“I know from having spoken to friends and colleagues in the UAE that there is a demand for high-quality lamb and other sheep-meat products.

“There are a lot of customers in the GCC obviously with large disposable incomes, who are prepared to pay for high-quality produce.”

The GCC represents the UK’s fourth-largest export market outside of the European Union, with exports of food and drink worth £625 million in 2021.

The UK government projects a free-trade deal with the bloc — comprising the UAE, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar — would boost trade by between £8.6bn and £15.8bn by 2035.

Before the Covid-19 pandemic, which caused a slump in global trade, exports of British lamb to GCC countries had rocketed by 652 per cent from 2018 to 2019.

Mr Jones said a pact would allow the UK to take advantage of the “massive upsurge in interest” in British lamb in the region.

But he said the main obstacles to seamless trade with the GCC were hygiene requirements and technical barriers held by the GCC.

“A free-trade agreement will resolve these difficulties and make the flow of trade far better between Britain and the GCC, so this is something that we’re very much looking forward to,” he said.

A relaxation of trade barriers would also benefit the UK's dairy industry by paving the way for an increase in British cheese imports to the Gulf markets. This could be particularly popular among Dubai hoteliers catering for British tourists who seek home comforts when on holiday abroad.

Gulf diners 'enthusiastic about Welsh lamb'

Conservative MP David Jones represents a farming constituency in northern Wales. Photo: UK Parliament
Conservative MP David Jones represents a farming constituency in northern Wales. Photo: UK Parliament

The Welsh MP hopes the UK can appeal to consumers in Gulf nations and persuade chefs to incorporate lamb into their cooking, such as the Omani national dish shuwa.

Mr Jones said particular emphasis should be placed on the uniqueness of British lamb products, how well regarded they are abroad and the high farming standards.

He said: “It’s a very, very high-quality product. I would hope that GCC cooks and chefs would see the potential of having such a premium product and would exploit it in their own dishes.”

Beef, chicken and other meats are typically less expensive than lamb in UK butcher’s shops and supermarkets. Farmers can see their profits suffer peaks and troughs due to the price of lamb fluctuating “alarmingly quickly”. The price of ewes in Britain shot up this year due to an increase in demand during Ramadan.

Mr Jones said an increase in demand from overseas would give the British farming industry a much-needed post-Brexit boost and go a long way towards providing stability in an industry increasing hit by uncertainty. It would also support jobs in the UK and lead to an increase in investment on both sides.

He said a free-trade deal with the GCC would be “extremely helpful” to his farming constituents, with prices soaring if overseas demand climbs.

“There is a market there already which has grown but I believe that it could grow significantly more quickly if the tariffs and non-tariff barriers were removed,” he said.

“When I’ve been to Dubai and Abu Dhabi in the past, for example, I like beef, and there’s always a premium placed on American-produced beef. Similarly, I would have thought a premium would be placed on British lamb products because they are so outstandingly good.”

Sealing a deal

The UK's International Trade Secretary Anne-Marie Trevelyan in June launched negotiations with the GCC in an effort to reach a free-trade deal and strengthen relations with the bloc.

Writing in The National, Ms Trevelyan said more than two years after leaving the EU, Britain was in a robust position to support Gulf nations as their economies undergo major transformations.

She said a deal “could throw open a door to the region’s vibrant economies for UK firms in sectors ranging from agribusiness to financial services”.

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The specs: 2017 Dodge Ram 1500 Laramie Longhorn

Price, base / as tested: Dhxxx
Engine: 5.7L V8
Transmission: Eight-speed automatic
Power: 395hp @ 5,600rpm
Torque: 556Nm @ 3,950rpm
Fuel economy, combined: 12.7L / 100km

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
UAE currency: the story behind the money in your pockets
%E2%80%98White%20Elephant%E2%80%99
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Jesse%20V%20Johnson%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Michael%20Rooker%2C%20Bruce%20Willis%2C%20John%20Malkovich%2C%20Olga%20Kurylenko%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
'Spies in Disguise'

Director: Nick Bruno and Troy Quane

Stars: Will Smith, Tom Holland, Karen Gillan and Roshida Jones 

Rating: 4 out of 5 stars

UAE WARRIORS RESULTS

Featherweight

Azouz Anwar (EGY) beat Marcelo Pontes (BRA)

TKO round 2

Catchweight 90kg

Moustafa Rashid Nada (KSA) beat Imad Al Howayeck (LEB)

Split points decision

Welterweight

Gimbat Ismailov (RUS) beat Mohammed Al Khatib (JOR)

TKO round 1

Flyweight (women)

Lucie Bertaud (FRA) beat Kelig Pinson (BEL)

Unanimous points decision

Lightweight

Alexandru Chitoran (ROU) beat Regelo Enumerables Jr (PHI)

TKO round 1

Catchweight 100kg

Marc Vleiger (NED) beat Mohamed Ali (EGY)

Rear neck choke round 1

Featherweight

James Bishop (NZ) beat Mark Valerio (PHI)

TKO round 2

Welterweight

Abdelghani Saber (EGY) beat Gerson Carvalho (BRA)

TKO round 1

Middleweight

Bakhtiyar Abbasov (AZE) beat Igor Litoshik (BLR)

Unanimous points decision

Bantamweight

Fabio Mello (BRA) beat Mark Alcoba (PHI)

Unanimous points decision

Welterweight

Ahmed Labban (LEB) v Magomedsultan Magomedsultanov (RUS)

TKO round 1

Bantamweight

Trent Girdham (AUS) beat Jayson Margallo (PHI)

TKO round 3

Lightweight

Usman Nurmagomedov (RUS) beat Roman Golovinov (UKR)

TKO round 1

Middleweight

Tarek Suleiman (SYR) beat Steve Kennedy (AUS)

Submission round 2

Lightweight

Dan Moret (USA) v Anton Kuivanen (FIN)

TKO round 2

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

MATCH INFO

World Cup qualifier

Thailand 2 (Dangda 26', Panya 51')

UAE 1 (Mabkhout 45 2')

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Updated: August 16, 2022, 3:20 PM